FOMC holds rates steady, markets rise modestly

The Federal Reserve maintained interest rates as they were on Wednesday, awaiting more data on inflation. In a 10-2 vote, the US central bank kept its key rate between 3.75% and 4%, acknowledging that inflation remained high while upgrading their assessment of the economy. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, calling for a quarter-percentage-point rate increase.

The Fed hinted at potential future rate hikes depending on inflation. Stocks rose modestly following the announcement, while bonds saw a slight pullback before steepening. Financial experts provided mixed reactions, with some arguing that the Fed should have raised rates today, while others believed that waiting for more economic data was the right decision.